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A Daily Market Report, containing 
all sales of Stocks, Bonds, and Gold, 
distance from the market at which 
Stock Privileges are offered, and a 
brief review of the most important 
Wall Street news, is published daily 
at 4 o'clock, p. m., and will be mailed 
free to any address by applying to 

L. W. HAMILTON & CO., 

10 Wall Street, N. Y. 



STOCK 




PECULATION. 



i 










c$'- 



Entered according to Act of Congress in the year 1875, by L. W. Hamilton & Co., in the 
Office of the Librarian of Congress, at Washington. 






o% 



INTRODUCTORY 



The main features of Stock Speculation are familiar to all frequenters 
of Wall Street, but for the benefit of those who have not had an oppor- 
tunity to observe the methods of business at the Stock Exchange, we 
have compiled a brief outline of the principal points of such operations, 
which will be found of great assistance to those seeking information on 
this subject. 

The value of clearness, fullness, and accuracy of expression, in any- 
thing written for the purpose of conveying information about Wall 
Street affairs, to persons who have no practical acquaintance with them, 
is best appreciated by those who have vainly attempted to get some 
definite ideas out of the ordinary articles and publications relating to 
this subject. The writers, having themselves been long familiar with 
the financial world, forget that many of their readers have little knowl- 
edge of its language, or its ways, and consequently fail to express 
themselves in such a manner as to be generally understood. 

In fact, it requires no ordinary degree of skill and care to give to 
persons who have had no experience in Wall Street, a clear and com- 
plete view of the way in which business is transacted there. 

Even publications designed for this express purpose, often entirely 
fail of its accomplishment. Yet, from articles properly adapted to this 
purpose, any person of ordinary intelligence can easily acquire correct 
ideas, not only of the customs of the Street, and the routine of the Stock 
Exchange, but of the causes which influence prices and determine the 
great fluctuations of the market. 

No one should suppose, however, that a novice in these matters can 
read financial articles as carelessly and hastily as general news, and at 
the same time fully understand them. The subject requires some care 
on the part of the reader, and it is worth all that it requires. It never 
lacks interest to those who have become familiar with it, and it often 
proves to be of the greatest practical value. A careful perusal of these 
pages cannot fail to interest and instruct all persons desirous of be- 
coming familiar with the great subject of Stock Speculation. . 

L. W. HAMILTON & CO. 



L. W. HAMILTON & CO., STOCK BROKERS, 3 

The New York Stock Exchange. 

The large and beautiful building in which the brokers of Wall 

Street daily assemble, and which is known as the Stock Exchange, is 
the centre of some of the most important influences which affect the 
financial and mercantile affairs of the country. The echoes of the 
bids and offers that are daily shouted in its halls, are heard in every 
city and town in the Union ; and many a resident from Maine to Cali- 
fornia waits eagerly for the telegraph to inform him of the profits or 
the losses which each day shows him, in his transactions in stocks. 
Even on the other side of the Atlantic, many a wealthy investor U oc- 
cupied in watching the dealings at the New York Stock Exchange as 
daily reported by the cable ; and the aggregate gains or losses that arc- 
often made in one hour within the walls of that famous structure, would 
be sufficient to make a poor man a prince or to reduce a prince to beg- 
gary. 

The Stock Exchange is a costly building, having two handsome 
fronts, one on Wall Street and the other on Broad Street. There is 
also a third entrance on New Street. The most interesting parts of the 
building are, perhaps, the spacious and elegant Hall in which the 
brokers daily assemble, and the vaults beneath it, where are deposited 
the vast amount of Bonds and Stocks dealt in at the Exchange. The 
number of members of the Stock Exchange is over eleven hundred, 
but all are not actively engaged in business. The value of a mem hers 
seat is between five and six thousand dollars. 

The Stock Exchange, with its enormous daily transactions, affords to 
institutions and private investors a regular market for buying and sell- 
ing securities. It gives at all times to their bonds and stocks a definite 
price, at which they can be turned into money at a moment's notice ; 
everydays newspaper tells them the exact cash value of their securities, 
and they are as sure of it as if they held the amount in money. But 
if there were no great centre of exchange, they would never know 
how much they were worth ; the sale of their securities would often 
involve delay, embarrassment and uncertainty, and the actual value 
of their investments would be greatly diminished from the fact that 
they were not readily convertible into money. The Stock Exchange 
has come into existence and assumed its present importance because it 
is a necessity to the country. Its activity and life represents the vital- 
ity and growth of the nation's material interests, and so it will continue 
to be while the national prosperity lasts, and capital and enterprise 
have active work to perform. 



4 L. W. HAMILTON & CO., STOCK BROKERS. 

Business Honor at the Exchange. 

There is no class of men in the country that preserve stricter rules 
in their dealings than the members of the New York Stock Exchange. 
The regulations of the Board are such that their accounts must be 
square with everybody. If a member were detected in a fraud upon 
his customers, or failed to fulfill his contracts, his seat would be for- 
feited and sold for the benefit of his creditors. So long as he occupies 
a seat in the Board he must be financially sound, and his transactions 
must be free from all irregularity. All certificates of stock, buyers' or 
sellers' options, Stock Privileges and all other contracts, to be a good 
delivery, must be signed or endorsed by a member of the Board. 

As a membership is worth $5,000 and upwards, the cost varying at 
different times, independent of its value to the broker as a means of 
carrying on his business, the inducement to preserve it is a strong one. 
But, besides this, the members are not often men of such character as 
to cheat those who deal with them. They feel a certain pride in the 
strict principles on which the business of the street is carried on, and 
desire to keep up the reputation of the Board. 

False reports, sensational rumors, forged telegrams and letters, and 
such other illegitimate means as are sometimes used to produce mo- 
mentary changes in the market, do not originate with the brokers of 
the Exchange, but with outside parties, who hang about endeavoring 
to make an occasional profit by these expedients. It was among 
members of the Board that the law to punish the circulation of false 
news, enacted by the last Legislature, was planned, and it was passed 
through their influence. 

As to the great combinations which have sometimes been formed to 
carry particular stocks upward or downward in the scale, there are dif- 
ferent opinions as to their fairness, but as a general rule, they are ap- 
proved of by the lucky parties and condemned by the others. Their 
plans always involve risk to the schemers, and often come to a very 
different end from that set down in the programme. , The capitalists 
who make such attempts to control the market are generally not 
brokers. 

A stranger visiting the Stock Exchange, during an active market, 
would suppose that the scene before him was one of such confusion and 
excitement, that fairness, order and business accuracy, could not, by 
any possibility, be brought out of it. But, notwithstanding the vast 
number of transactions, and the wonderful rapidity with which they 
are effected, there are very few mistakes or disputes. There can be no 



No. lO WALL STREET, NEW YORK. 



better proof of the exactness and completeness of the system pursued 
than the daily accomplishment without misunderstanding of this great 
mass of business, involving such enormous values. 

In dealing at the Exchange through a broker, one has, therefore, 
better security for fair treatment than in transactions of almost any 
kind, in the fact that his agent belongs to an organization governed by 
the most stringent rules, which it has ample power to enforce. The 
fact of his membership is also proof that his business record is clear, as 
the Board is very exclusive, three adverse votes preventing the admis- 
sion of any applicant. 



Brokers and their Customers. 

It is almost necessarily the wish of a broker that those who buy and 

sell through his agency should be successful in their operations. Next 

to his own failure, the worst mishap that can occur to any business 

vnan is the failure of his customers, as their prosperity is the essence of 

his thrift. 

The Wall Street broker knows that if his customer makes hand- 
some profits, both his ability and his inclination to extend his opera- 
tions will be increased, and that his success will very probably induce 
others, to whom he will tell it, to come into the same office. Men seem 
to feel a peculiar pleasure in gains made in speculative operations, and 
very few make a secret of them. It is, therefore, always probable that 
the broker will take the best care he can of the interests of those who 
entrust him with their orders. If they ask his opinion he will give it 
honestly, and in some cases, if he sees inexperienced parties taking 
steps which are evidently mistaken ones, he will offer them information 
or advice which will prevent an unnecessary loss. He is prepared to 
answ 7 er questions and furnish reliable statistics regarding the standing 
of any incorporated company, and the value of its shares and bonds j 
he will also keep his customers posted on the current topics of the 
street, and any new movement at the Exchange. 

As the broker and the customer have in reality a common interest, 
the experience of the former and his knowledge of all the details of the 
market, are safely available for new T operators as well as for those who 
have themselves become familiar with the Exchange and its ways. It 
will not be his fault if his customer meets with losses through inexpe- 
dient or unlucky transactions ; and when the operator's affairs turn out 
favorably, and his profits roll up to handsome sums, the result will 
afford satisfaction to his broker as well as to himself. 



6 L. W. HAMILTON & CO., STOCK BROKERS. 

Taking a Flyer. 

There are a class of men who are not ordinarily seen in Wall Street 
but are fond of watching the market from a distance, and making ven- 
tures at considerable intervals, improving such opportunities as they 
think particularly favorable whenever they arise. You will find some 
sagacious old bank president, or country capitalist, sitting down before 
his comfortable lire every evening in the year reading his favorite Wall 
Street journal, with a mind quite undisturbed by the fluctuations of 
stocks, until there appear signs of some change of great importance. 

The market, perhaps, has been in a state of depression and dullness 
through a summer season, and is at last beginning to show new activity 
and life ; orders are coming to the brokers from all quarters ; the 
volume of business at the Stock Exchange is rapidly increasing, and 
evidently mustering for a grand campaign. Then our wary capitalist 
reads every word of the news with the closest attention ; he carefully 
selects the stocks that he will purchase, and sends a telegram and 
check to his trusted broker in the city. The movement in the markef 
goes on 5 prices rise 10 or 20 per cent, within a month ; Wall Street is 
full of excitement, when the broker receives an order to sell the stocks 
bought for the country capitalist, and having done so, credits him with 
a large profit. The rural mansion perhaps shows a new Brussels car- 
pet on the parlor floor, and the young lady of the house sits down to 
play the new Steinway piano, on which her heart has been for some 
time set j while the glowing countenance of the head of the family, as 
he presides at the generous Christmas dinner, illustrates the satisfactory 
results that may come from taking a " flyer n in Wall Street. Or, to show 
the meaning of this popular phrase by another case, suppose a mer- 
chant has collected a considerable amount of money from his customers 
and finds the times too dull, and the immediate prospect of trade too 
unfavorable to justify him in using the cash that he has in hand to 
make any large purchases of goods. He does not wish to let his 
money lie idle, and having perhaps occasionally made a little venture 
in Wall Street, and so acquired some experience in stock transactions, 
he again looks in that direction for a profitable way of employing his 
funds. At the same time other business men throughout the country 
are in the same situation with himself ; money is accumulating in the 
cities, and the banks are reporting immense deposits ; speculators are 
able to borrow large sums at low rates of interest, for the purchase of 
stocks, and a multitude of buyers are coming into the market, because 
for the time being they can find no other kind of investment that pro- 
mises satisfactory return. 



No. 10 WALL STREET, NEW YORK. 



Under these circumstances, if the merchant makes his purchase with 

good judgment, he does the best thing possible in using his money to 
buy stoek. The situation of affairs is such that an important advance 
is almost certain to take place, and when he has realized a handsome 
profit, he will be able to convert his funds into cash again, and be pre- 
pared to re-invest them in his regular business. Many of the most 
successful bankers, merchants and manufacturers in the country have 
been in the habit of employing their spare funds, from time to time, in 
taking "flyers'' such as we have described. In fact, it is hardly pos- 
sible for any intelligent and enterprising business man, who knows any- 
thing of Wall Street affairs, and the ease with which large profits are 
frequently made, to resist the inducements to take them, which will 
sometimes be presented by his own circumstances and the general 
financial situation. 



The Wall Street Vocabulary. 

To fully romprehend the business of Wall Street, it is necessary 
that the terms and phrases used by brokers should be thoroughly 
understood. In the Stock Exchange such terms as " Cash " 
" Regular" " Buyer 30" " Seller 30 " are constantly heard. They are 
phrases without which, or without some similar abbreviation of speech, 
a large stock market would be impossible. For the benefit of such of 
our readers as are not familiar with the meaning of these, and other 
phrases peculiar to Wall Street, we have prepared the following brief 
explanations : 

Cash. — When stocks are sold for cash the seller must deliver them 
the same day they are sold, at or before 2. To P. M. The purchaser is 
also bound to receive and pay for them within this time. In stock 
quotations C. is used as an abbreviation of cash. 

Regular — When the buyer of stock receives and pays for it on 
the day following that on which the sale is made, the transaction is 
called regular ; this being the way in which sales are usually made, is 
always regarded as binding, when no special agreement has been made 
to the contrary. In all transactions the stock must be delivered 
before 2.15 P. M., as the purchaser is not obliged to receive it after 
this hour. 

Buyers' and Sellers' Optioxs. — The mysterious characters, s 3, 
b 3, s 15, B 30, and similar ones, often puzzle readers of the market 
reports. They stand for Seller 3, Buyer 3, Seller 15, Buyer 30, and 
indicate that the party selling or buying the stock reserves the privi- 



8 L. W. HAMILTON & CO., STOCK BROKERS, 

lege of delivering or taking it, as the case may be, at any time within 
the number of days indicated by the figures. When stock is sold 
11 seller 3," the seller can deliver it at once, or at any time within 3 
days. When sold " Buyer 3," the buyer can require its delivery at 
once, or at any time within three days. Three days options bear no 
interest j beyond this time 6 per cent, interest is paid by the purchaser 
from the day of sale to the day of delivery. When an order to buy or 
sell is given, the first point necessary to know is, when the person 
wishes to receive or deliver the stock. It is apparent that w r here the 
seller wishes money immediately he sell Cash ; where he can get a 
higher price or cannot make a delivery of the stock until the next day 
he sells Regular ; where a longer time is required before he can make 
a delivery, he sells Seller 3, Seller 10, or Seller 30 ; but if he can 
deliver the stock at any time, he sells Buyer 3, 10, or 30, as may be 
desired by the purchaser, and thereby gets a better price, as the buyer 
is willing to pay a trifle more for the stock, for the advantage of taking 
it at any time he pleases. 

Margins. — A sum of money deposited by a person speculating in 
stocks with a broker, to secure the latter against loss on funds advanced 
by him to assist his customer in his speculations. The amount usually 
required by brokers as a margin on which to buy or sell stocks is 10 
per cent, of their par value, amounting to $1,000 on one hundred shares. 

Carrying Stocks. — When a broker is holding stock for a customer, 
retaining it in his own possession until ordered to sell, he is said to be 
carrying the stock for his customers account. As by far the greater 
part of the money used in stock speculation is furnished by the broker, 
it is necessary for him to regain the stock in his possession as security 
for the money advanced. 

Long and Short. — When a party has purchased stock and is 
holding it for higher prices he is said to be long of the stock he is 
holding. When he has sold stock which he does not at the time 
possess, for future delivery, expecting to be able to purchase it at a 
lower figure, he is said to be short of the stock. For example, suppose 
a party thinking Pacific Mail will advance, buys 100 shares, and at the 
same time expecting a decline in Western Union, he sells 100 shares 
for future delivery, we should say he was " long of Pacific Mail, and 
short of Western Union." 

Borrowing Stock. — When a party has sold stock short in the reg- 
ular way he must borrow it of some one who has it, in order to deliver 
it to the purchaser. This can usually be done by depositing the money 



No. lO WALL STREET, NEW YORK. 



received for the stock, with the party of whom it is borrowed, as a 
guarantee that the stock will be returned to the lender when called for. 
No interest is charged on short sales, as the broker uses the money re- 
ceived for the stock, to deposit with the party of whom he borrows it. 

Bulls and Bears. — A speculator who bays stocks for an advance, 
in the expectation of higher prices, is called a bull, but if he sells 
stocks short, expecting to make a profit on a decline, he is called a 
bear. The origin of these phrases, like all other broken metaphors, is 
probably due to a pungent conception of facts. If a bear finds any- 
thing in his travels, whether it be a turkey on a roost, or a man on a 
tree, he lifts his paw and pulls it down. The bull, on the contrary, 
lowers his head only to give men and things a decided upward movement. 

The application of these terms to stock speculators is too obvious to 
need explanation. Bull operators take a stock at its lowest price, and 
attempt to toss it up to as high a figure as possible ; bear operators, on 
the other hand, prefer to pull values down to the lowest possible figure. 

Believing that prices are too high, the bear sells for future delivery, 
and is said to be short of the stock ; the bull buys, confident, that pri- 
ces will be higher, and is said to be long, possibly because this word is 
the opposite of short, or suggestive of the length of his purse. 

Into these two classes all the speculators, who are the life of "Wall 
Street are divided ; the bulls of to-day are bears to-morrow. There are 
men who constitutionally hopeful — always looking for a rise j and 
others who equally disbelieve everything, and invariably go short 
of stocks in their operations. The large majority, however, alternate 
from bull to bear, and from bear to bull, occording to the speculative 
outlook. 

Pool. — A combination of speculators, formed for the purpose of 
buying up any particular stock, and thereby advancing the price. 

Corner. — When a stock has passed into the hands of a Pool, and 
the bears having sold largely for future delivery, are short of the stock, 
the members of the pool can, of course, make them pay any price they 
choose for the stock they have agreed to deliver. A large advance in 
the price is the result and there is said to be a corner in the stock. 

Abbreviations. — The letter x or ex-div, are used to show that a stock 
is sold without the dividend, which is about to be paid, and that it re- 
mains, in that case, in the hands of the seller; Gr, for guaranteed; 
Cons, for consolidated j and Pf. for preferred stock, or stock which has 
precedence of the ordinary shares of the corporation issuing it, with 
respect to the payment of dividends, none being allowed on the com- 
mon stock until a certain percentage has been paid on the preferred. 



lO L. W. HAMILTON & CO., STOCK BROKERS, 



A Put Contract. 

A Contract giving the holder the privilege of selling to the party 
signing it, a certain number of shares, of any particular stock, within a 
definite time, at a stipulated price, is called a Put. The party selling a 
Put agrees in the contract to purchase from the holder the stock named, 
at a stated price, which is usually from 1 to 2 per cent below the mar- 
ket price, at the time the contract is signed. This per cent, below the 
market price at which a Put is drawn is called the distance from the market, 
and is regulated by the activity of the stock, and the demand for the 
contracts. 

The time for which a Put contract is usually drawn is thirty days, 
although they can be made for a longer or shorter time if desired. 
The cost of a thirty-day Put is one per cent, of the par value of the 
stock, amounting to $100 on one hundred shares. The brokers com- 
mission for buying a Put is $6.25, making the entire cost, including 
the commission, $100.25. 

The following is a copy of a Put on one hundred shares of Erie, the 
market price being 32, and the distance 2 per cent. 

New York, 187 

For value received, the bearer may deliver to the undersigned one 
hundred shares of the stock of the Erie Railway Company, at thirty per 
cent of its par value, at any time within thirty days from this date. The 
undersigned is entitled to all regular, or extra, dividends declared during 
this time. 

Expires 187 Signed 

When a Put is held on a stock that has declined in price, the holder 
will on the day it expires, or before if the fall in price has been suffi- 
cient to show a good profit, buy the stock at the market price, and de- 
liver it to the party of whom the Put was purchased, at the higher 
price named in the contract. The difference between the price at 
which the stock is bought, and the price at which it is delivered, is the 
profit made on the transaction, less the cost of the Put and the brokers 
commission. The buying of the stock, and settling the contract is 
usually done by the broker through whom the Put v Tp -s purchased. 
The money necessary to buy the stock is furnished by the . .ker, who 
charges a commission of $12.50, one one hundred snares for doing the 
business. That the reader may more fully understand this operation, 
let it be supposed that within the thirty days Erie declines to 20, and 
the holder of the Put orders his broker to buy one hundred shares and 
settle the contract. The broker buys the stock at 20, paying $2,000. 



No. lO WALL STREET, NEW YORK. 



11 



for it, and delivers it to the party of whom the Put was purchased at 
30, the contract price receiving for the one hundred shares the sum of 
$3,000, and renders the following statement of the transaction, show- 
ing a net profit to the holder of the Put of $881.25, on an investment 
of only $106.25, with no risk of a greater loss. 

NiwYonk 187 

M 

In ACCOUNT with L. W. HAMILTON & CO. 
Dr. 

To Put on 100 shares Erie at 32 $100 00 

" Broker's commission ■'„ pei <<-m 6 25 

" 100 shares Erie, boughl at 80 -2,000 00 

" Commission for buying stock, -£ per cent 12 50 

' ( Balance to credit 987 50 

13,106.25 
Cb. 

By Cash paid for Put and commission 

" 100 shares Erie delivered to Beller of Pal at :*o :{,000 00 

|3 } 106.V5 

From balance to credit 

Deduct amount paid for Put and commission 106 25 

And net profit on the operation is $831.25 

Should the priee of Erie advance, instead of decline, and remain at 
or above .'JO during .the time for which the Pat was drawn, the holder 
would not buy it, but would let the contract expire without delivering 
the stock. In this case the loss would be only SI Ob. 25, the cost of the 
contract. But should the market price of the stock be at any point 
below 30 on the day it expired, the holder of the Pat would buy one 
hundred shares, and deliver it to the party who signed the contract, 
realizing the difference between the price at which the stock was 
bought, and 30 the contract price. If the stock was bought at 29, 
the amount realized would be $100, or the exact cost of the Put, and 
the loss would be simply the brokers commissions, amounting to $18.75. 
If the stock was bought at 28, $200 would be realized, or a net profit 
of $81.25. 

A Put is OT ~actly the reverse of a Call, and should be purchased on 
a stock . t is likely to decline in price. Whenever a panic occurs in 
the stock market, the holders of Put Contracts always make large 
profits. 31 any shrewd speculators make a practice of buying Puts on 
any stock that has advanced rapidly, in anticipation of a decline, it 
being well understood that a fall almost invariably follows a sudden 
rise. 



12 L. W. HAMILTON & CO., STOCK BROKERS. 

How a Put is Used as a Margin. 

It is necessary for the safety of a broker, when he purchases and 
holds stock for a customer, that the latter should deposit a sum sufficient 
to ensure him against loss in case the stock should decline in value 
before it was sold. This deposit, or margin, as it is termed, was for- 
merly 10 ten per cent, of the par value of the stock, amounting to 
$1,000 on one hundred shares. Instead of this plan, that of using a 
much smaller sum, together with a Put, is now employed to a very 
large extent and with much greater safety to the speculator. A Put 
being a contract, signed by some responsible party, to take the stock 
at a figure one or two per cent, below the price at which it was bought, 
the broker has a guarantee that the possible loss on the stock is limited 
to one or two hundred dollars. For this reason the broker will only 
require a cash margin equal to the difference between the price at 
which the stock is bought, and the price at which the eigner of the Put 
agrees to take it. 

By this method the losses of the speculator are limited to compari- 
tively small sums ; while, if the market rises, in accordance with his 
expectations when the purchase was made, his profits will be nearly 
as large as under the old system, the only additional expense being 
the cost of the Put. 

Should the price of a stock decline to the contract price of the Put 
before it was purchased, a broker would require no cash margin to be 
deposited, the Put being sufficient security to carry the stock. Stock 
can always be bought against a Pat without any cash margin, when 
the market price of the stock is at, or below, the contract price of the 
Put. But when the market price of the stock is above the price named 
in the contract, a sum equal to the difference is required. For ex- 
ample : — A Put on Pacific Mail at 40 would be good security for a 
broker to buy the stock, if he could get it at that figure j but if the price 
was 41, a deposit of $100 would be required, if 42, $200. 

Many speculators buy Puts, but do not buy the stock until the price 
has declined to a figure at or below the Put price. Should the stock 
be bought below the Put price, a profit is certain, as the stock can be 
delivered to the party who signed the Pat at a figure above the 
cost of it. 

In operations of this kind the speculator is required to deposit a sum 
sufficient to cover commission and interest charges, $50 on one hun- 
dred shares, being the usual amount required. To illustrate this 
method of operating we will suppose that when Union Pacific was 



No. lO WALL STREET, NEW YORK. 



13 



selling at 50, a party, thinking the price would advance, buys a Put on 
one hundred shares at l£ per cent below the market, and at the same 
time buys the stock at 50. The cost of the Put would be *100, the 
cash margin required S150, and the $50 for interest and commissions 
would make a total of $300, that the broker would require for the 
operation. Before the Put expires, Union Pacific sells at 70, and the 
broker, receiving an order from his customer, sells at that price, and 
makes the following statement of the transaction : 

New York, 187 . 

M 

Ix accouxt with L. W. HAMILTON &, CO. 

Dr. 

To Put on 100 shares Union Pacific at 48* $100 00 

" Commission for buying the same 6 25 

" 100 shares Union Pacific at 50 5,000 00 

u Commission buying stock 12 50 

" " sellingstock 12 50 

" Interest on sto ck 30 days 29 16 

" Balance to credit 2,139 59 

$7,300 00 
Cr. 

By cash paid for Put $100 00 

" " deposited for margin 150 00 

" " " for com. and interest 50 00 

" 100 shares Union Pacific, sold at 70 7,000 00 

$7,300 00 

From balance to credit, $2,139.59, deduct So00 deposited with the 
broker, and the net profit on the transaction is §1,839.59. 

One advantage of this method of operating is, that stock can be 
bought and held until the Put expires without risking the loss of over 
$300. The extent of the loss in an operation of this kind is reached 
when the stock falls to the Put price, which in this case was 4Sj, and 
remains at or below that figure until the Put expires. No greater loss 
is made by this method, when the stock falls 10 per cent, than when it 
falls 1 J per cent., as the seller of the Put contracts to take the stock at 
li per cent, below the price at which it was bought, without regard to 
the market price, at the time the stock is delivered to him. The specu- 
lator is in this way ensured against only a limited loss, without placing 
any limits to his profits. 



14 L. W. HAMILTON & CO., STOCK BROKERS. 



A Call Contract. 

A contract for the future delivery of stock is termed a Call, and 
gives the holder the privilege of purchasing of the party with whom 
the contract is made, a certain number of shares of the stock named, 
within a definite time, at a stipulated price j' or in other words, the 
party who sells a Call agrees to deliver to the purchaser, if called for, 
the stock named at the contract price, which is usually from I3 to 3 
per cent, above the market price of the stock at the time the contract 
is signed. This per cent, is called the distance from the market, and 
is governed by the activity of the stock and the demand for contracts. 
At a time when the market is very active and stocks are rapidly ad- 
vancing, the distance is always greater than when the market is dull, 
or when prices are on the decline. 

The purchaser of a Call is not obliged to take the stock, and will 
not do so unless the price advances above the contract price. In case 
the price of the stock remains at or below the contract price, until the 
expiration of the time for which it was given, the purchaser of the Call 
will lose only the amount paid for it, which is, including broker's com- 
mission for purchasing, $106.25 on one hundred shares. But should the 
stock advance above the contract price, the holder of the Call will 
receive the difference between that, and the market price. An advance 
of 1 per cent, would be $100 on one hundred shares; an advance of 10 
per cent, would be $1,000. While the risk of loss to the purchaser of 
a Call is limited to the sum paid for it, the amount of profit that may 
be realized is unlimited. A Call is exactly the reverse of a Put and 
should be purchased on stocks that are most likely to advance in price. 
The cost of a Thirty-day Call is 1 per cent, of the par value of the 
stock, amounting to $100 on one hundred shares, and in the same pro- 
portion for a longer or shorter time. The broker's commission for 
buying a Call is 1-1 6th of one per cent., amounting to $6.25 on one 
hundred shares. The following is a copy of a Call on 100 shares 
of Union Pacific, the market price being 47, and the distance 3 per 
cent. 

New York, 187 

For value received, the bearer may Call on the undersigned for One 
Hundred shares of the stock of the Union Pacific Railroad Company, at 
Fifty per cent, of its par value, at any time within Thirty Bays from 
this date. The Holder of this Contract is entitled to all regular, or extra, 
dividends declared during this lime. 

Expires 187 . Signed 



No. lO WALL STREET, NEW YORK. 13 



The holder of a Call on a stock that has advanced will on the day 

it expires, or before if the price has advanced sufficiently r<> show a 

good profit, call for the stock at the contract price, and sell it at the 

market price, the difference being the profit on the transaction, less 

the cost of the Call and the broker's commission. Calling for the 

stock and selling it is termed dosing the contract, and is usually 

done by the broker through whom the Call was purchased. The 

broker will always furnish the money to pay for the stock, and 

for doing this and for selling the stock will charge a commission 

of $12.50 on one hundred shares. Should Union Pacific advance 

to 72 within the thirty days, and the broker be instructed to close 

the contract, he would call on the party who signed the contract, 

for the stock at 50, paying $5,000 for the 100 shares, and immediately 

sell it at 72, receiving for it the sum of $72,000. The following is a 

copy of the statement that would be rendered by the broker, showing 

a net profit of $2,081.25 on an investment of only $106.25. with no 

risk of a greater loss : 

New Yokk 1-T 

M 

IN ACCOUNT with L. \V. HAMILTON & CO. 
1)k. 

To Call on 100 shares Union Pacific at 50 $100 00 

" Broker's commission for buying Call 6 25 

" 100 shares Union Pad lie, called at 50 5,000 00 

" Commission for selling the same 12 50 

" Balance to credit 2,1-7 50 



17,306 25 

Cr. 

By cash paid for Call and commission $] 

" 100 shares Union Pacific sold at 72 7,200 00 

From balance to credit $2,187 50 

Deduct amount paid for Call and commission 100.25 

And the net profit on the Call is (2,081 25 

It is not often that a stock advances enough during thirty days to 
pay as large a profit as this, but a profit of from $500 to SI ,000 is fre- 
quently realized on 100 shares. 

Parties buying Calls incur no liability of loss beyond the amount 
paid them, and no money is required from the speculator to pay for the 
stock when the contract is settled. The money to buy the stock is ad- 
vanced by the broker, who will, after selling it, pay to his customer the 
profit on the transaction. 



16 L. W. HAMILTON & CO., STOCK BROKERS. 



How a Call is Used as a Margin. 

A great majority of operators, when coming into Wall Street for tha 
first time, make their plans with reference to the profits to be derived 
from upward movements in stocks, paying no attention to the fact that 
a decline in the market can be made a source of quite as large gains as 
an advance, by those who are able to foresee and improve it. But as 
speculators become familiar with the whole system of Wall Street 
speculation, the) 7 cease to confine themselves to speculating for a rise, 
and not only buy when they anticipate an advance, but sell stocks 
short or, for future delivery, when there are indications of a decline. 

For example, if a party thought Lake Shore was likely to fall, when 
it was selling at 83, he might order his broker to sell 100 shares short, 
of for future delivery, without having the stock in his possession when 
the order was given. If the broker sold the stock in the regular way, 
he would borrow the stock for delivery, from some one who had it on 
hand, depositing with them as security the money received from the 
sale of it. Or, he might sell the stock " Seller 30," which would give 
him 30 days in which to delivering it. Having thus sold 100 shares, 
and borrowed the stock for delivery, or contracted to deliver it within 
30 days, he would buy the stock when it had declined to a point where 
a good profit could be realized. If it declined to 75, and he bought at 
that price, he would pay $7,500 for 100 shares, and either return the 
stock, if he had borrowed it, or deliver it if he sold it " Seller 30," and 
receive $8,300, the price at which it was sold. The profits on the 
transaction would be $800, less the broker's commission for selling and 
buying the stock. 

But the broker in making the sale or contract for future delivery at 
83, (for the fulfilment of which he must himself become responsible,) 
could not be sure that the stock would not rise, instead of fall, as his 
customer expected • and in that case, if not secured in some way by his 
customer, he would suffer a loss. Suppose that Lake Shore advanced 
to 90, and the party of whom it was borrowed called for the stock, it 
would be necessary for the broker to pay 90 for it, in order to return 
the stock he had borrowed, and the loss would be $700. Or, suppose 
he sold it for delivery any time within 30 days, and" at the expiration 
of the time Lake Shore sold at 90, he would be obliged to pay that 
price for it, in order to fulfil his agreement with the party to whom he 
sold it j in either case the loss would be $700. 

The broker, therefore, requires some security to protect himself 
against this loss. This security was formerly given by the speculator 



No. lO WALL STREET, NEW YORK. 17 



depositing with the broker $1,000 on every 100 shares sold, but since 
the system of operating with Privileges has been introduced, a Call on 
the stock is deposited with the broker, together with the difference be- 
tween the contract price and the price at which the stock is sold. In 
this case we are supposing that some responsible party who owned 100 
shares of Lake Shore would sell a Call on it at 2 per cent, above the 
market price, or in other words, would agree to sell the stock, if called 
for within 30 days, at 85 j for this contract he would be paid $100. 
The speculator would place this contract, with $200, in cash, in the 
hands of his broker, who could then execute the order to sell short 
without risk to himself. To show this, we will suppose as before, that 
Lake Shore advanced to 90. The broker would demand the stock 
from the party who sold the Call at 85, paying for 100 shares, $8,500, 
and deliver the same to the party to whom it was sold at 83, receiving 
for it $8,300. The difference of $200 would be covered by the money 
deposited by his customer, and he would lose nothing. The customer 
would lose, in consequence of his miscalculation of the course of the 
market, only the $200 deposited, with $131.25 expended for the Call 
and broker's commissions, in all $331.25. 

But if the judgment of the speculator proves to have been correct, 
and the stock declines, as we at first supposed, to 75, the sum of $800, 
which we found to represent his gross profits, would be reduced only 
$106.25, the amount paid for the Call, and commission for buying. 

It will be seen by this illustration that a Call can be used as a 
margin for selling stocks short with the same advantage as is afforded 
by a Put in buying for an advance. 



A Straddle. 

A Double Privilege drawn at the market price of the stock is called 
a Straddle. The cost of a Straddle is from 3 to 4£ per cent., or from 
$300 to $450, for a contract on one hundred shares. The only differ- 
ence between a Straddle and a Spread is, that one is made at the 
market price of the stocks, the other at a distance from the market. A 
Straddle is a contract drawn in the same form as a Spread, and gives 
the holder the privilege of calling for the stock at a fixed price, or of 
delivering it at the same price to the party who signs the contract. A 
Straddle is desirable when a party wishes to buy and sell stocks, with- 
out being obliged to deposit a cash margin. The broker's commission 
for buying a Straddle is $12.50, on one hundred shares, the same as on 
a Spread. 



18 L. W. HAMILTON & CO., STOCK BROKERS, 



A Spread Contract. 

A Contract giving the holders the privilege either of buying or sell- 
ing a certain number of shares of any particular stock, at a stipulated 
price, within a definite time, is called a Spread, and is equivalent to a 
Put and Call on the same stock. From this fact it is sometimes called 
a Double Privilege. It is drawn at from 1 to 2\ per cent, below and 
the same distance above the market price of the stock at the time the 
contract is signed. The cost of a Spread for thirty days is 2 per cent, 
of the par value of the stock, amounting to $200 on one hundred shares. 
The broker's commission for buying a Spread is one-eighth of one per 
cent., amounting to $12.50 on one hundred shares, making the entire 
cost of a thirty-day Spread on 100 shares $212.50. 

The following is a copy of a Spread on 100 shares of Lake Shore, 
the market price of the stock being G2, and the distance 2 per cent. : 

New York, 187 . 

For value received, the bearer may Call on the undersigned for one 
hundred shares of the stock of tlie Lake Shore Railway Company at sixty- 
four per cent, of its par value, at any time within thirty days from 
this date. 

Or, the bearer may, at his option, deliver the same to the under-, 
signed at sixty per cent, of its par value, at any time within the period 
named. All regular or extra dividends declared during this time are, 
in either case, to go with the stock, and this contract is to be surrendered 
upon the stock being either called or delivered. 

Expires 187 . 

Signed 

The holder of a Put makes a profit only when the stock declines -, 
the holder of a Call only when it advances. But the holder of a Spread 
realizes a profit when the stock either rises above, or falls below the 
contract price, and loses only when the market is very inactive, with 
but slight fluctuations for the entire thirty days. 

Should Lake Shore advance to 70 at any time within the thirty 
days, the holder could order his broker to settle it, which would be 
done by calling, on the party of whom the contract was purchased, for 
the stock at 64, and selling it at 70, the market price, the same as in 
the settlement of a Call. The proceeds realized would be $600, and 
the net profit $375, the cost of the Spread and the broker's commissions 
being $225. 



No. 10 WALL STREET, NEW YORK. 19 



Should Lake Shore fall to 54, and the broker receive orders to dose 
it, he would buy the stock at that figure, paying $3,400 for it, and 
deliver it to the party of whom the Spread was purchased at GO, the 
contract price, the same as lie would settle a Put, realizing the same 
profit that he would, had the stock advanced to 70. The commission for 
closing a Spread is $12.50 on one hundred shares, the same as for a 
Put or Call. 



Distance and Settlement of Privileges. 

The price paid for Puts, Calls, or Spreads, is always the same, being 
1 per cent., or $100 for a Put or Call contract, and 2 per cent., or $200 
for a Spread contract on one hundred shares of stock. Bat the rate, or 
as it is usually termed, the distance from the market at which they are 
drawn, is variable, ranging from 1 to 3* per cent. A very active mar- 
ket, with wide fluctuations, increases the demand for Privileges, and 
the distance will be advanced in obedience to the well known law of 
supply and demand, while a dull market, with narrow fluctuations, will 
cause sellers to offer them at a much smaller distance from the market. 
Some particular stock may advance rapidly with good prospects of a 
further rise, like Union Pacific in April, 1875, when an advance of 
over 25 per cent, took place within a month, and the demand for Calls will 
be so great that sellers can advance the distance to a higher figure, with- 
out decreasing the sales. 

It is usually the best time to buy Privilege Contracts when the dis- 
tance from the market is the greatest, as it will always be found that 
the market is correspondingly active, and the chances for a large profit 
much better than on contracts bought at a small distance when the 
market is dull and inactive. In buying Contracts, much depends on 
the judgment of the broker in securing them at the most favorable 
time. It is for this and other reasons that brokers should never sell 
their own Contracts to their customers, as they would then be interested 
against their customers. Whenever in an active market a broker 
assumes to give the distance from the market for the future, it is safe to 
say that he proposes to sell his own Contracts to his customer, 
instead of buying them in the regular way at the Exchange, as it is 
just as impossible for him to say at what distance he can buy a Contract 
to-morrow, as it is for him to foretell the future price of the stock. 

The safest course for speculators to pursue is to place their orders in 
the hands of a thoroughly responsible broker, and trust to his judgment 
and discretion in securing a Privilege at a time when the market is 



20 L. W. HAMILTON & CO., STOCK BROKERS. 

most favorable, both in price and distance. When reporting the pur- 
chase of a Privilege, brokers should always state the market price of 
the stock, distance from the market, and the hour of the day when the 
contract w r as purchased. 

WHEN STOCK PRIVILEGES SHOULD BE SETTLED. 

Many speculators make losses in operating with Stock Privileges by 
not instructing their broker to settle the contract at the proper time, 
when, if the right order had been given, instead of a loss, a profit 
would have been realized. To secure our customers a profit of 100 
per cent, when it has once been made, without losing the chance of 
realizing a much larger profit, should the price of the stock move 
steadily in favor of the contract, we have prepared a blank form of a 
stop order to be used by our customers in giving the necessary in- 
structions to settle a Privilege at the proper time, which will be mailed 
free on application. Whenever a profit can be made equal to the cost 
of the Privilege, it is always policy to secure it, and purchase another 
contract on the same stock, rather than let the market price re-act to a 
point where little or nothing can be made. By signing and returning 
to us the order, which is sent with all certificates of purchase, our 
customers can be assured that their contracts will be properly settled. 



Broker's Commission. 

The following are the regular commissions charged by all members 
of the Stock Exchange for buying or selling Stocks and Stock Privi- 
leges : 

For buying or selling 100 shares of stock, £ per cent $12 50 

For settling Stock Privileges on 100 shares, £ per cent 12 50 

For buying Spread or Straddle on 100 shares, £ per cent 12 50 

For buying Put or Call on 100 shares, X L 6 per cent 6 50 

The following is the cost of Thirty-day Privileges, including the 
brokers' commission : 

A Put or Call on 10 shares $10.63 

A Spread on 10 shares - $21.25 

A Put or Call on 25 shares $26.56 

A Spread on 25 shares $53.13 

A Put or Call on 50 shares $53.13 

A Spread on 50 shares $106.25 

A Put or Call on 100 shares $106.25 

A Spread on 100 shares $212.50 



No. lO WALL STREET, NEW YORK. 21 

Extensions and Renewals of Privileges. 

It will sometimes happen when a Stock Privilege has been held by 
the purchaser until the time of its expiration approaches, that the price 
of the stock will have moved nearly, but not quite enough to show a 
profit. Under these circumstances, the holder will naturally be reluc- 
tant to give up the contract and accept a loss, perhaps at the very time 
when a decided movement of the stock in his favor seems the strongest ; 
and in order to relieve him from the necessity of doing so, the party 
who sold him the privilege will generally be willing to extend it 
for another thirty days for a less sum than was originally paid for it. 
The price paid for the second thirty days is usually $75 for Puts and 
Calls on 100 shares, or $ per cent., and $150 for Spreads. On less 
than 100 shares the price paid for the extension is in the same propor- 
tion. When the price of the stock on the day the privilege expires is 
about the same figure that it was when the contract was purchased, it is 
always best to secure an extension if possible. When a speculator has 
purchased a Call and the price of the stock has fallen materially, in- 
stead of advancing as he expected it would, or a Put and the price has 
advanced, a renewal of the contract would be more to his advantage. 
A renewal differs from an extension in the fact that a change in the 
contract price of the stock is made in the former, but not in the latter. 
Sometimes an extension should be obtained, and at other times a re- 
newal would be most desirable, according to the market price of the 
stock, as compared with the contract price of the privilege. The cost 
is the same and we will always secure for our customers, whichever 
is most desirable. To secure either an extension or a renewal of any 
privilege, it is necessary that we should receive an order for doing it, 
on or before the day it expires. Many parties make a handsome profit 
on the entire investment during the second thirty days, who otherwise 
would lose the first cost of the privilege. 

Should we receive an order to secure an extension or a renewal of 
a contract that could, on the day it expired, be settled at a profit, we 
should disregard the order, and settle the privilege instead. Cases of 
this kind often occur, by the market becoming very active on the day 
the contract expires. In no instance do we secure an extension or re- 
newal when it is not for the interest of our customer that we should do 
so, even though we may have an order from him to do it. 

The commission charged for securing an extension or renewal is the 
same as for [making the first purchase, being $6.25 for a Put or Call 
on one hundred shares of stock, and in the same proportion for a smaller 
number. 



22 L. W. HAMILTON & CO., STOCK BROKERS, 



"Why Stock Privileges are Sold. 

The question is often asked by persons who are unacquainted with 
Wall Street affairs, what inducements there are for capitalists to sell 
Privileges. The persons by whom these contracts are made, they say, 
are generally among the most experienced and able men in the street ; 
and they express surprise that these parties should make agreements 
which would seemingly take money out of their own pockets as fast as 
they put it into the pockets of the holders of their contracts. It is just 
here, however, that the fallacy lies j the truth being that there is a di- 
vision of profits between the seller and the buyer of the Privilege, 
neither of them taking his share from the resources of the other. The 
seller, in the conservative spirit which usually governs capitalists, is 
contented with a small margin of profit on each transaction, which he 
receives in the shape of the sum paid for the contract, and the differ- 
ence of one or two per cent, between the price of the stock at the time 
when the contract is made, and that which he agrees to receive or de- 
liver it. 

The buyer of the Privilege will have the profit arising from any ad- 
vance or decline in the price of the stock, within the time and limits fixed 
in the contract, and his side of the transaction being more of a specula- 
tive character, his profits will often be very much larger than those of 
the seller of the Privilege. 

Suppose a capitalist to be holding stock in the expectation of an ad- 
vance, intending to dispose of it and secure his profits after a rise of 1^- 
per cent. If he sells Calls at that distance above the market price, at 
the rate of $100 for every 100 shares, he will add that sum to his gain 
of $150 on every 100 shares held. The following figures will show 
the profits made by each party in such a transaction, letting A repre- 
sent the seller of a Call on Union Pacific, and B the purchaser, the 
price at the date of the contract being 30, and the Call being made 
at 31£. 

Received by A for Call on 100 shares........! $100 00 

Received for 100 shares stock sold to B at 31$ 3,150 00 

$3,250 00 

Value of stock when Call is sold $3,000 00 

Net profit to A, the seller, on the transaction 250 00 

$3,250 00 
In this case the party who sold the Call received $100 for it, which 
added to the l£ per cent, advance on the stock makes the net gain to 
the seller of the Call $250. 



No. 10 WALL STREET, NEW YORK. 23 

If the juice has advanced to 38, at the time when the stock is deliv- 
ered to P>. his account, after selling the stock, will stand as follows: 

Received for l ( >" shares stock at 38 $3,800 00 

Paid A for Call contract |100 00 

Broker's commission, buying Call 6 25 

Paid A for 100 shares stock at Mi 3,150 00 

Brokei's commission, Belling stock 12 50 

Net profit to B, the buyer, on transaction 531 25 

$3,800 00 

On tlic same principle, if A should sell 100 shares short, or for future 
delivery, by selling a Put on it ; he would add SI 00 to his profits by 
the decline. 

Again, suppose the capitalist desires to obtain 100 shares at a price 
below that at which the stock is selling at the time. lie sells a Put 
at 1 per cent distance from the market for $100, making himself secure 
of that sum in any case, and if the stock declines as he expects, he will 
get it at a price virtually 2 per cent, less than that which it commands 
at the time of issuing the contract. 

A Put is also frequently issued by a broker who has an order to buy a 
stock as soon as it shall have declined to a certain price. This, being 
an agreement on the part of his customer to take the stock at a given 
figure, is, to him, as good as a Put; and he accordingly sells a Put 
against it without incurring any risk. When the stock falls to a point 
within 1 per cent of the price at which the order to buy has been given, 
he will negotiate the Privilege at that distance below the market. If 
it continues to decline and is delivered to him, he will turn it over to 
his customer without loss to himself; if it rises, and is therefore not 
offered to him by the buyer of the option, he will have nothing further 
to do in the transactions ; but in either case, he will evidently make the 
$100 paid as the price of the Put. 

Another reason for the sale of Privileges is the desire on the part of 
cliques and large operators to produce a favorable impression, or the 
opposite, with respect to any stocks w T hich they happen to be attempt- 
ing to control. If they wish to sustain the price of a stock, they will 
sell Puts on it at a very small distance from the ruling price at the 
time ; if they wish to depress it, they will sell Calls on it in the same 
way. While the manoeuvres of cliques are often ruinous to themselves 
and to hundreds of others, they always afford great advantages to those 
who operate by means of Privileges. These result partly from the 
wide fluctuations occasioned by their movements, and partly from the 
very favorable terms on which thev sell Puts and Calls. When there 



24 L. W. HAMILTON & CO., STOCK BROKERS. 



are two contending cliques in a stock, each selling options very close 
to the market, and on opposite sides of it, the Purchaser of a Put and 
a Call is almost certain of a handsome profit. 

The foundation of the business of selling Privileges is capital. Men 
of very small means may enter the field of speculation as purchasers of 
Privileges, but those who sell them are parties known to be financially 
strong, sound ond reliable. The inducements for capitalists to sell 
Double Privileges are more complex in their character than those 
which lead them to sell Puts and Calls, but essentially of the same 
nature. The seller of a Double Privilege must have the funds in hand 
to take the stock and pay the stipulated price for it, if it declines and 
is put or offered to him for acceptance, in accordance with the terms of 
the contract ; and he must also either have in his possession such an 
amount of the stock itself as he has agreed to deliver, or keep in readi- 
ness the funds to step into the market and buy it at a moment's notice, 
so as to be prepared to deliver it to the holder of the Privilege in case 
it rises and is called. 

For instance, the seller of a Double Privilege on New York Central, 
at 1 per cent, distance from the market price, which we will assume to 
be 104, agrees in the contract either to take the stock at 103, or to de- 
liver it at 105. He therefore keeps the sum of $10,300 at command, 
so as to take the stock if put to him at 103, and also buys 100 shares 
of New York Central at the market price, and keeps it in his safe, 
ready to be delivered if called from him at 105. 

If the price rises and the stock is called, his profits will evidently be 
secure. He will have the benefit of the advance in value of the 100 
shares held, from 104 to 105, amounting to $100, besides the $200 
paid him for the Privilege. 

On the other hand, if the stock falls and is put to him, the net cost 
of the 200 shares which he will then hold will be only 102i j the 100 
shares which he purchased at the outset having cost $10,400 j the 100 
shares delivered to him on the contract costing him $10,300 j and the 
sum total of $20,700 being reduced, by the $200 received as the price 
of the contract, $20,500, or $10,250 for each amount of 100 shares. 

It will be seen that the seller of the Privilege, in the case just taken, 
is sure of either making a clear profit of $300, or of getting 200 shares 
of New York Central at a figure l£ per cent, below the market price at 
the time when the contract is made. Like the party to whom he sells 
the Privilege, he*has two strings to his bow, and is secure of a material 
advantage, though not certainly knowing which way the market will 
turn. 



No. lO WALL STREET, NEW YORK. 25 



If the maker of the Privilege does not wish, however, to be bur- 
dened with 100 shares in addition to those originally held, he will 
easily avoid it by selling short when the price declines to 103. That 
is, he will sell 100 shares at that price for future delivery, and when 
the stock is put to him by the holdor of the Privilege, he will take it 
at 103, and at once turn it over, at the same price, to the party to whom 
he has sold. In this way he will avoid increasing the amount of stock 
on his hands, and the $200 received for the Privilege, will still go to 
dimmish the net cost of the 100 shares originally held. 

As the sellers of Privileges are commonly men of judgment and ex- 
perience in financial affairs, they are governed by their views of the 
general situation of the market, at different times, in making their con- 
tracts and in their mode of preparing to meet them. As a rule, they 
perhaps retain the stock put to them on a declining market, and hold 
it for an advance, They thus make sure of buying at low prices on 
an average, besides having the sums paid thern for their contracts to 
reduce their net outlay still further. The sale of Privileges, properly 
conducted, cannot be regarded as a speculative business, but affords 
sure, though not extravagant returns. It is to the Purchaser of Privi- 
leges that the possibility of large profits on single transactions is re- 
served, notwithstanding the comparatively trifling atnount of capital 
which his operations require. It is not an unusual occurrence that a 
Put or Call on 100 shares is settled at a profit of two or three thousand 
dollars, and on sixty-day contracts the profit is often much greater. 

As both the sellers and the buyers of Privileges may be gainers, it 
it will perhaps be asked, whether all parties operating in Wall Street 
can make money at the same time. The idea which prevails in tne 
mind of the public is, that the street is somewhat like a great gambling 
establishment, where anything that is gained by one individual must 
be lost by some other. The fact is, however, that there are times when 
almost all operators in stocks are doing well. When money is flowing 
freely from other forms of investment into the shares sold at the Ex- 
change, and the whole market is rising, all but the few who attempt to 
resist the tide by selling short will be growing richer. 

Yet it is perfectly true that a large proportion of the profits made 
by the sellers and buyers of Privileges, represents the losses of other 
parties j and these are the reckless or inexperienced speculators who 
adhere to the dangerous system of buying on cash margins. Thus it is 
that prudent men in the end take precedence of mere thoughtless ad- 
venturers in Wall Street, as well as in every other sphere of business 
activity. 



26 L. W. HAMILTON & CO., STOCK BROKERS. 



Brokers and Speculators. 

The business of a broker, whether in stocks, cotton, grain, o^ any 
other article of merchandize, cannot, on sound principles, be united 
with that of a speculator, or with that of carrying- on ordinary trade for 
his own account. The broker must be an active and wide-awake man 
in the market, carefully gathering all information that may be of value 
to buyers and sellers; but his object should be to obtain this informa- 
tion for the benefit of his customers, and not directly for' his own use. 
His activity, intelligence, and acquaintance with the business, are in 
fact the very inducements which lead his customers to make him their 
agent in their transactions, and he is, therefore, bound to communicate 
to them fully whatever knowledge he may possess that may be of use 
to them. A broker who is known to speculate on his own account, 
soon loses the confidence of his customers, and finds their patronage 
decreasing. If he recommends the purchase of a certain stock, they 
will suspect that it is because he has it on his hands and desires to sell 
it, or to see the price strengthened by an increased demand ', and if he 
advises them to sell, they will fear that he is short of the stock, and 
interested in producing a decline. 

The laws which govern the general business of brokerage apply 
with full force to the sale of Stock Privileges. A broker will some- 
times be asked, when recommending a Privilege on any particular 
stock as a good purchase, why he does not buy it himself; his answer 
w T ill be, that it is because he is a broker and not a speculator ; that his 
business is one of absolute safety, giving steady and valuable returns, 
with which he chooses to remain satisfied, rather than to sacrifice 
them for the advantages to be derived from successful speculation. 
For reasons similar to those which should prevent a broker from pur- 
chasing, Privileges for the purpose of speculating for himself, it is not 
best that he should issue or sell Privileges on his own account. 

The fact that the signature affixed to a Privilege is that of the broker 
who offers it for sale, is sufficient to produce doubt in the mind of a 
customer, as to the soundness of any advice that he may give with ref- 
erence to its purchase. 

The proper business of the broker is to bring buyers and sellers 
together. Being constantly present in the market, and having daily 
interviews with the Capitalists and large Operators who issue Privi- 
leges, he is able to render indispensable aid to buyers of these con- 
tracts, and also to accommodate the parties who sell them by finding 
ready purchasers. 



No. lO WALL STREET, NEW YORK. 27 



But by selling Privilege Contracts signed by himself, be must sacri- 
fice the interests of both the parties between whom he ought to act as 
a middleman. lie interferes with the interests of the capitalists by 
whom Privileges are usually sold, by entering into competition with 
them in their own special line of business ; and he, of course, loses 
favor with them in consequence. They will prefer to deal with the 
broker who brings them all the custom that he can, and they will 
make their most favorable terms in their transactions with him. The 
broker who offers his own Privileges for sale also loses favor with 
buyers. The transactions, ae between themselves and him, is one 
which involves confidence on their part. Being themselves in some 
measure unacquainted with the market, they require the assistance of a 
broker who is not only experienced and well informed, but entirely 
disinterested. 

But the broker who deals only in Privileges issued by others, has 
the entire confidence of his customers, and will secure for them the 
best terms possible, as his popularity and BUOCess in business depends 
in a great measure on his doing ><>. Hi.- interest and theirs will per- 
fectly coincide, which will be a strong guarantee that their orders will 
be executed to the best advantage. 



The Routine of the Exchange. 

Every school-boy in the country has heard of the New York Stock 
Exchange. Every one knows that it is a scene of immense daily trans- 
actions in stocks ; that it is full of excitement and activity; and that 
great fortunes are made and lost in it. But very few, outside of Wall 
Street, are acquainted with the details of the business which is carried 
on in it, or know anything of its daily routine. At 10 o'clock in the fore- 
noon the members of the Board begin to assemble in their hall, and at 
10.30 all stocks dealt in at the Exchange are called in regular order 
by the Vice-President, and the bids and offers that are made for each 
of them in its order, are recorded on one of the large blackboards 
placed on each side of the President's desk for this purpose. At 1 
o'clock the second call of stocks takes place, and at 3 o'clock the hours 
of business end. 

Though large amounts of stock are sometimes sold in this way, yet 
the greater part of the sales are made at other times, whenever the 
orders from customers happen to be received by the brokers. Each 
active stock has some particular part of the hall assigned to it, where 
those who are dealing in it may be seen collected. As you look down 



28 L. W. HAMILTON & CO., STOCK BROKERS, 

on the floor of the hall from the Visitors' Gallery, you see these groups 
in all parts of the room. The brokers are rapidly making bids and 
offers at the top of their voices, raising their fingers in the air to em- 
phasize them ; and the noise that proceeds from the whole assembly of 
over one thousand brokers is very confusing to a stranger. But the 
mode in which the business is done is nevertheless, in fact, a perfect 
model for system and order, and it is seldom that a mistake occurs in 
the execution of an order. 

To illustrate the exact way in which stocks are bought and sold, let 
us suppose a speculator wishes to buy 100 shares of Union Pacific. 
He repairs to his broker's office, and writes his order to purchase that 
amount, or if at a distance from the city, he sends his order by tele- 
graph. The moment it is received, a clerk or boy rushes away with it 
to the Stock Exchange, where it is delivered to the member of the 
firm who is in attendance there at the time. He at once makes his 
way into the " crowd," where Union Pacific is being sold, and proceeds 
to bid for the stock, until he obtains it at the price named in the order, 
or at a lower one if he finds it possible to do so. A notice of the 
transaction is promptly sent to the customer, and the price, with the 
number of shares sold, are instantly telegraphed, by the instrument in 
the hall, to the headquarters of the stock-telegraph company, and 
thence in all directions to brokers' offices, hotels and other places 
where indicators are kept. The sale thus made determines the price of 
stock at that moment, and will be observed with interest by hundreds 
of speculators who are closely watching the telegraph instruments in 
different parts of the city. 

The next day, before 2.15 P. M., the broker, by whom the stock 
was sold, will send 100 shares of Union Pacific to the firm through 
whom it was bought, and a check for the value will be given in 
return. If the customer chooses to pay cash for the stock, he will of 
course take it and keep it in his own possession • but if it is bought on 
a margin or against a Put, it will be locked up in his broker's safe till 
tbe order to sell it is given. If the stock is bought "buyer 3" it 
need not be received and paid for until the third day afterwards ; if 
bought "cash" it must be taken and paid for the same day. 

In this w-ay the business of Wall Street goes on with perfect method 
and exactness, the vast negotiations of each day being carried out on 
the following one without failure or misunderstanding. The system 
affords the strongest of all proofs of the rapidity with which immense 
dealings in stocks can be carried on, and of their advantage, in this 
respect, over all other forms of investment. 



No. lO WALL STREET, NEW YORK. 29 



Profits Made on Privileges. 

When Privileges are bought at the right time on any of the active 
stocks, the profits realized on them is very large, when compared with 
the small amount paid for the contracts. 

The following table will show the profits made on Puts and Calls, 
on 100 shares of the most active stocks, during the first six months of 
1875. On contracts for less than 100 shares, the profits were in the 
same proportion. 

Feb. 18, Western Union sold at 70£, and Calls were } 

soldat73£; Mar. 17, the price was78&, and > $381.25 
Call contracts were settled at a net profit of ) 

Feb. 27, Pacific Mail sold at 33, and Calls were sold at } 

35£ ; March 27, the price was 45 i, and Call > $856.25 
contracts were settled at a net profit of ) 

March 1, Union Pacific sold at 40|, and Calls were J 

sold at 4l£ ; Mar. 29, the price was G8£,and V $2,518.25 
Call contracts were settled at a net profit of ) 

March 1, North-west sold at 38 1, and Calls were sold ^ 

at 40£ j Mar. 9, the price was 45 J, and Call > $418.75 
contracts were settled at a net profit of ) 

March 1, Wabash sold at ll£, and Calls were sold at j 

12f ; March 30, the price was 18, and Call [ $406.25 
contracts were settled at a net profit of ) 

April 22, Ohio and Miss, sold at 2SJ-, and Puts were i 

sold at 27; May 21, the price was 21, and [ $481.25 
Put contracts were settled at a net profit of ) 

May 8, Erie sold at 30£, and Puts were sold at 29 ; } 

May 26, the price was 16£, and Put con- > $1,131.25 
tracts were settled at a net profit of ) 

May 8, Lake Shore sold at 72f, and Puts were sold } 

at 71 ; June 1, the price was 57, and Put > $1,281.25 
contracts were settled at a net profit of ) 

May 8, Pacific Mail sold at 44£, and Puts were sold } 

at 42£; June 3, the price was 32, and Put £ $906.25 
contracts were settled at a net profit of ) 

June 1 , Union Pacific sold at 79£, and Puts were sold } 

77 j June 3, the price was 70 J, and Put > $656.25 
contracts were settled at a net profit of ) 

June 1, St. Paul sold at 35£, and Puts were sold at ^ 

34; June 12, the price was 2S|, and Put > $418.75 
contracts were settled at a net profit of ) 

June 1, Western Union sold at 71£, and Calls were ^ 

soldat73|; June 29, the price was 7S£, and > $331.25 
Call contracts were settled at a net profit of ) 



30 L. W. HAMILTON & CO., STOCK BROKERS, 



A Daily Report of the Stock Market. 

For the benefit of our customers we publish a Daily Report of all 
sales made at the Stock Exchange, which will be mailed free to any 
address. In addition to the market report and rates for Stock Privi- 
leges, we also give a brief report of Wall Street news, and endeavor to 
keep our readers posted regarding the probable course of the market. 
It frequently occurs that we receive private information regarding 
some particular stock that will materially affect its value as soon as the 
facts are made public, and when our customers act on such information 
they are almost sure to make a profit. Should it become known that a 
Railway Company will fail to pay the interest on its bonds when due, 
the stock will be sure to fall, and parties who buy Puts on it before 
the decline takes place will be certain to realize a large profit. 

On the other hand, should the earnings of a Company show a marked 
increase, and the prospect of a dividend on the stock be favorable, the 
price would rapidly advance. In this case, parties buying Calls w T ould 
make a handsome profit. The rise and fall in the price of all active 
stocks, which is daily taking place, is almost invariably preceded by 
certain signs well known to the careful observer. For instance, when 
the price of the bonds of a company have advanced, w T e are con- 
fident that the stock will rise ; but when the price of the bonds have 
declined, we expect to see a fall in the price of the stock. 

It often occurs that a party desirous of speculating in a certain 
stock is undecided which to purchase, a Put or a Call. If it were pos- 
sible for a person to foresee the movement in stocks, he would know 
what kind of a Privilege to purchase. Bat as the wisest are often 
mistaken in their views regarding the future course of the market, 
many prefer to buy Spreads, so that should the stock either advance or 
decline, they are sure of a profit. If they have a Spread, and the 
stock falls, they settle the Put side of the contract ; if it rises, they 
settle the Call side. 

Many of our customers residing at a distance send us orders for 
Privileges, leaving it to us to make the investment in such stocks as in 
our judgment seems best. To our old customers it is needless for us to 
say that such orders always receive our careful attention. But, to those 
who may favor us with an order for the first time, we w r ould say that 
whenever we do not consider it prudent to execute the order immediately, 
we await a more favorable time before making the investment. All 
persons desirous of receiving our Market Report, regularly, must send 
their address to our office. 



No. lO WALL STREET, NEW YORK. 31 



L. W. HAMILTON & CO., 
Stock Brokers, 

No. 10 WALL STREET, NEW YORK. 
. -♦-« 

We buy and sell on commission, for cash or on a margin, Railway 
Stocks, Bonds, Gold, and all securities dealt in at the New York Stock 
Exchange. All stocks bought or sold on a margin of 5 per cent, of 
their par value, amounting to $500, on 100 shares. Stocks bought or 
sold against Privileges, on a deposit of a sum equal to the difference 
between the market price of the stock and the contract price of the 
Privilege, and $50 to cover commission and interest charges. Less 
than 100 shares will not be bought or sold on a margin or against a 
Privilege. Interest at the rate of seven percent, per annum is charged 
for money advanced to buy stocks. 

We also pay particular attention to purchasing Stock Privileges, and 
can always secure Puts, Calls, Spreads or Straddles on all active stocks, 
signed by members of the Stock Exchange, or other responsible parties, 
at the best market rates. 

Contracts purchased for parties residing at a distance from New York 
a\ ill be held by us subject to their order, for which a certificate of pur- 
chase will be issued. In order to be able to take advantage of the 
market, and settle Privileges at the most favorable time, it is necessary 
that we should retain the contracts in our possession. Our thorough 
knowledge, acquired by years of experience in the Exchange, of the 
movements of the powerful combinations of capitalists, often formed to 
control the prices of the leading stocks, and an intimate acquaintance 
with the principal operators, enables us to give our customers valuable 
information regarding the most desirable stocks to operate in, and the 
method most likely to be successful. 

In the buying or selling of stocks and Privileges, we do a strictly 
commission business, consequently are entirely disinterested when we 
advise our customers of the probable course of the market, and the 
proper time to buy or sell in order to secure the largest profit. Much 
of our well-deserved popularity, and the rapid increase of our business, 
may be attributed to the sound and honest advice which we have al- 
ways given our customers. 

All orders by mail or telegraph will receive prompt attention. 
Money can be remitted by draft, money order, express or registered 
letter with perfect safety and at our risk. 



L. W. HAMILTON & CO., 

No. 10 WALL STREET, 
NEW YORK. 




,. w. Br 



YORK. 



A Table s 



1873 



North -West. 



HlgtfLa 



year 1873. 



Jrember. 



84.311 



_°*|31j 



18f 



December. 



High Low 



57& 47 



10f 



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SJOpjo Jioq? ui puas ojqi ^sud oq; joj 
-Old oqi ui Sni^dpi) oj v joj a*|uuu pjoq 
ojq'BJOA'e; ^soiu oq; :i o; uibjjoo Adjoin 
jo os [i uoppne v jo a moos jo 'sojnSg moj 
oa\ %'$\\'\ jopjo ui A*JBSjoud oq; ax ouipop 
jos^qoand oq^ jo jop*)^ oqAi osoqj, 
A*q pasuqoand soSijia oinoos jo xoo^s oqi 



-ufi -pos^qojnd si 



o% qsiAi A*oqi ji pu« 



papjBAuoj 9q him '{joj 803p3j ^poqA*JOA9 

<9riSSI JO O^p ^95[.n?iuil 81 Oq J9A9U9qA\ 

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no 9S9JIAUJ rc ui9LqM ^ o#b AJJB9 oq; 

JO ^dl909J UO ^S9AUI ft %'BX{'\ 'p9A9l|9q A\[B 
pjBAUOJ HBO ^99J;g 1 JJ9pun UOip\? JO 9{d 

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|ai uos-bqj OfduiB suq 
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XqAi uosboj ou jo a) aas no^„ rspuouj 
9qi ye qjuora OAipi^ ojopouiuioQ sy 
%svd sjtjoa' uj *q;aO[ o ^nj ?q3uoq oqM. 
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SJ98«qojnd 9q; joj 9,)q qA\ «8TTnq„ oq* 
oq; 3[99A\. %a*i p9jo 3j;aoo Jioq; |U|uj os 
put? oiu-Bd v jo osi* q; inq o* Smpadxo 
J9pJ0 m siq* op ioq; 3 o; U99q SBq* A*oiiod 
-noo ^9q;9soq;uou9. A o <S90ud J9qSiq jo 
JJB uo spBOjdg Aw^. 9soq; jo 9pi's 9q| 
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k)t 



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'uojuii n-i^SQAt 



)f Stocks, : 

)]MTH « 

ept. 4. ' Sept. 6. Sej 



h- 


Low- 
est. 


HlKh- 
est 


I.ow- High- 
est, ent. 


H 


39i 39i 


38| 39| 


n 


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17 


16| 16| 


^i 


564 


57 




3i 


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36 


35i 36| 


H 


18f 


19 





2i Bid. 


22i 


22 


22| 


7i 36| 


37* 


36*| 37| 


3 5| 


64 


5| 


3f 73 


73* 


72| 


73i 


H 78| 


79* 


:- :.'t 



pt 


21. Sept 

Low- Hlgh- 


22. Sepi 

Low- High- 
est. , e«t. 


>l 


39i 39| 


39 39i 


1 


m 17^ 


16* 17} 


* 


53? r>\± 




4 






r 


16* 16} 


15| 16* 



H 


21* 


21 


20 1 


20 


3* 


35| 


36| 


35* 35| 






5| 


If 


70* 


7H 


70* 


70| 


7 x 


76 


76i 


75* 


76* 



. the HIGHEST an 



ril. 


May. 




r Dlf. 


High Low 


m 


lig 


M M 


42* 37§ 


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41 


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18 


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15 


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38 32 


6 


35 


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4 


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45* 32$ 


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42 


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14* 8§ 


6* 


10 


5 4S 


284 71* 


6S 


7 P 



L W. HAMLTONJc CO,, STOCK, BROKERS, 10 WALL STREET, NEW YORK. 



A roue snowing u» annuma between the HIGHEST and LOWEST Prices of the Sedative Stocks for the year 1873. 


ber. 


1873. 


Jam. 


axy. 


February. 


March. 


April. 


May. 


June. 


July. 


August. September. 


October. 


November. 


Deoen 


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81 77} 


31 




31 


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n 
»i 

_ 4 I 


'■"j'06} 
321 30 

615 58| 


_ 2; ||,„] so 
2} ! 3UJ9 




06' 'Hi 




CoJ. Clio. & In'l- C. 


41} .10} 


*i 


43} 3B 


5} 


i-j; .-in 


6} 


401 3.-,! 


s 


-■-', 


_245_1F1_81_ 


_24_l_6j 

?.-,! 7'i 
47 115 




DeLLact&West^ 


101 J 93 


s; 


103 100 


3 


102 100 


2 


101} 95 


61 


9} 

. s s 


Erie Railway. 










no} 62i 


4} 


66} 631 


3} 


65} 50} 


35 


C5J58 




__8}_ 


Hannibal & St. Jo. 












6 




«} 


42 35 












Lake Shore. 


97 91/ 


Si 


97} 90 


7} 


96} 91J 


« 


93} 881 


5} 


93 89j 


31 


1,,, .„,- 


*i 


0,1: Hlj 




95} 92} 


3 j 93 73 




8| 

_2L 


Mil. & St. Paul. 


51; ,-,ii 


a* 


54} 51| 


»» 


66|52 


»5 


62} 53 


0} 


585 531 


Si 


.-,.'■: 4H. 


S} 


mi: mi, 


-3. 


:.u; .-„., 


31 51 30 


21 






«»t 


H. T. Cen. & Hod. 


1061 Mi 


7 


100J101J 


;»! 


!H" 


«i 


102} 97J 


*5 


11,21 ii'i; 


25 


102J1001 


1} 


IH'.llUI, 


IO.-..1,:.; 


1 li,-,, ,'i 


>«1 

12? 


951 80j 




MI 17' 


Ohio & Miss. 








•' 




2| 


4.7', 411- 


*t 


441 40| 


31 


42 36J 


•■>.; 


41J 381 


25 


nil Hi 


_S. 


:l'H 21,' 


iiii.l 'li! 


91 


27 21} 








Pacific Mall. 




6 










61} 53 


8} 


57} 39} 
701 67} 


_5i 


jll-_35J 
','", '-I, 


6', 


411 34i ; 51 

l.i' 08 


451 36} 


;;; | 


13} 


37} 25 




33}25 








Wabash. 


75} 71) 


M 


74J71} 


»j 


741 71j 


3 


725 62 


'»!. 


73 67}| 5} 






49 331 




55 451 


85 


Union Pacific. 


39J 34 


a* 


nil; :;:i 


3* 


355 33J 


21 


345 25 


95 


32} 25} 


„., , ,„i 


6} 


•in: VII -1; 




'471 111 






381 


26} 14} 
68143} 


11} 

2»1 


«1 »<i 


Western Union. 


85} 78} 


6| 


1141 dill 


11 


90183 


n 


87177} 


95 | 881 84 


•ii 


.-hi si; 


55 


Bi -1! !»; 


03}87j| 0} 


921 ■"<! 


38i 


73145 



A Table showing the DIFFERENCE between the HIGHEST and LOWEST Prices of the Speculative Stocks for the year 1874, 




187 4,. 


January. 


February. 


March. 


April. 


May. 


Juue. 


July. 


Au g „ S t. 


>,'[,(, -ml,, ]-. 


October. 


November. 


December. 


8 «,0KB. 


"■"" 


"*' 


""- 


Dir. 


Hls-Low 


D,r. 


"*"-"• 


».r, 


H, E h,„ w 


Bit 


aw, low 


m, 


H,„L.„ 


m, 


BU.U..I Dir. 


'»■» 


«r. 


n , E „L„w 


"r, 


e W ,w 


m . 


EithLm 


m 


Worth-'West. 


62} 57} 


4} 


6H 56} 


51 


58 50} 


n 


568 13 


13} 


47 39| 


,,: 


44535 


95 


43}36 


n 


39} 36J 2} 


41} 35} 


6} 


41136} 


5} 


46} 36J 




48 43 


„ 


Rock Island. 


l"'l ,'i 


51 


1, ',.!■■. 


*b 


H,8 I„ll, 


13 


Hi',.', 'ill' 


1<M 
12J 


Hill 111, 


5 


1025 921 


10} 


1011_96i 
191 15} 


_5L 

3} 


103} 98} 4j 


104} 99} 


5} 


104} 96} 
14 81 


,v. 


mil mi; 


'. 


I1I21IMH 




Col. Chic & Incl. C. 


32} 27} 


_51 
«1 


IK] 'in 


25 


'32} 28} 


■U 


32} 20 


21}18} 


31 


20J 14} 


45 
8} 


16} 11} 5J 


15 8 


7 




Del. Lack. & "West. 


in.-,; 'in 


112,11(1.-,, 


«l 


111}107 


4} 


Hi"; 111! 


35 


H'lllKii,' 


3 


1101106} 


107J105} 


1 ,; 


109 107 2 


U0}108 

281 22' 


01 


ii,i',iiiii; 
36 27 
28} 23} 


1 


lii'.i;lli8. 
2'1'i 2,1; 
27} 24} 


31 
2} 


liin',1117,; 

■20J 26 




Erie Railway. 


51! 46; 

in: 17,;, 




501, 111 


3| 

28 


128 28; 

,.".' '.'„' 


9} 

51 


405 34 


6» 


36} 341 


25 




33}30 


3} 


34i 31} 2} 




ihmn il.al & St. Jo. 


33} 30} 
83J80J 


33} 25} 
80} 73} 


T8 

7; 


31 25 


6 


28}231 


5 


27125 


2} 


26} 241 2 




Lake Slioro. 


848 "J 


n 


77113} 


3» 


77} 675 


9} 


76} 71} 


51 


74J72 25 


81} 73} 




358 32 


_5' 


82170J 
JI95J2} 
II12J10U 


2} 

n 


811 7.8, 
4IIJ 11,71 




Mil. <fc St. Paul. 


49} 415 


n 


48} 431 


'« 


■'i .a' 


«} 


44} 34} 


10 


378 1111 


'• 


41131} 


9} 


395 32} 


n 


36} 331 3} 


35} 32 






H.Y.Cen. &Hud. 


mi; null 


H 


105}103 


21 


in.;, iiim 


•n 


101} 96} 


*» 


985 96 


25 


101 961 


■IS 


1111,1 07F 


21 


1031100 31 


10451001 




162}100} 






Ohio & Miss. 


36 30} 


5} 


34} 31 


32 


12 -:- 


21 


31} 24} 


7 


265 22} 


51 


26} 21} 


s 


26J 23} 


25 


25} 2IJ 3J 


2H; 2111 




20 i 211; 




33} 27J 




33} 29} 


4 


Pacific Mail. 


441 38} 


64 


44 41,4 


2J 


401 41,' 


81 


48J 37} 


113 


45} 40} 
111 (IJ 


45} 39} 


6} 


45 42 


3 


48} 44J 3} 


.711 47; 


4} 


51', 44'. 


6} 


45J 43j 


2} 


45} liii; 


11} 


"Wabash. 


55} 494 


Si 


54. 481 


58 

1J 


19} 43} 


5} 


46138 


8} 


0} 


J'l; 20 


10} 


iiHl mi' 


5} 


378 331 4} 


;i.-,; mi 


4» 


3.7 | 2.8,, 


n 


325 29 




32J 181 


14 


TJnion Pacific 


351, 30} 


5 


,i: . , ' 


n.i; 3ii 


7 


is, ;■ no 


Wj 


34} 25} 


9} 


20J '23 


6i 


28}25 


3,: 


29} 27}|~2 


1171 28', 


94 


KTs 1111.1 


*t 


36} 34 


21 


371331 


35 


"Weiitern Union. "■» 


80 73J 


7 


77J 72} 


51 


82J 711 


H{ 


80 68 


12 


751 69 


«1 


76 69 


7 


75170 


si 


77} 73} 4) 


80} 76} 


31 


8.) 78* 


3} 


81} 78 


3} 


83} 781 


S 



STATISTICAL TABLES. 

Mnoh valuable information regarding the prob- 
able ooiirse of the stock market oan be obtained 
by a oareful study of statistical tables. To be 
1 able to form an intelligent opinion of future prices, 
it is necessary to compare present prices with 
those of the past ; to foresee the changes likely to 
take place for the coming year, it is important to 
know the changes that have taken place in past 
years. 

That our readers who are interested in the move- 
ment of the speculative stocks may make these 
comparisons, we have compiled the above table 
from the official records of the Stock Exchange. 

For example, it will be seen, by referring to the 
tablo, that in November, 1873, North-west sold at 
31f and 50, having advanced from the lower figure 
to the higher during the month, and a speculator 
who bought 100 shares at 31jJ, could have sold 
within the month at a profit of 18f per cent, 
amounting to $1,837.50 ; or if a Call Privilege 
had been purchased, the same profit would have 
been realized, less the cost of the contract, and the 
distance at which it was drawn. During the first 
week of September, 1873, Western Union sold at 
92i, and the last week at 54i, a decline of 3Si 
| per cent within the month, and a party who sold 
100 shares short, or for future delivery, could have 
bought it within the month at 54:1;, thus realizing 
a profit of $3,825 ; or, if a Put Contract had been 
purchased, the same amount would have been made, 
less the cost of the Put and distance from the mar- 
ket at which the contract was drawn. Many 
parties who operate in stocks invariably purchase 
•prudi, on which a profit ii made whenever the 



stock either rises or falls over 3$ per cent. A 
tuation of 5J per cent, in a month will enable the 
holder of a Spread to make a net profit of 8200 
each one hundred shares. During 1873 this profit 
could have been made on Pacific Mail nearly 
every month, and on many other stocks, during 
more than one-half of the year, large profits could 
have been made. 

In 1874 fluctuations were not as wide, yet profits 
on Spreads were made on Western Union, Pacific 
Mail and St. Paul eight months out of the twelve. 
It should not be supposed, however, that it is pos- 
sible for even a skillful operator to anticipate the 
exact degree of fluctuation which will occur within 
a given month, or that he will always form a cor- 
rect opinion of the course which the maik,'t will 
take. The sagacity and good fortune which would 
enable a speculator to buy nt the lowest and sell 
at the highest prices of each successive month, 
would be certain to bring him great wealth in a 
short time. It is possible, however, for a person of 
ordinary judgment to select such stocks as will 
fluctuate sufficient durino- a month to make a rea- 
sonable profit on the monev invested in a Spread. 

Were it possible for a speculator to foresee the 
movement in stocks, ho. would know what kind of 
a Privilege to purchase in order to make the largest 
profit. If it was certain that prices would decline, 
he would buy Puts, or if prices were likely to ad- 
vance, he would purchase Calls. But as this is 
impossible, the wisest course to pursue is to pur- 
chase Spreads on the most active stocks. A Spread 
being a Put and a Call combined in one contract, 
gives the holder a profit on the Put if the stock 
falls, or on the Call if j t ,isea. Per instance, in 



December, 1874, Wabash sold at 32|, and the 
prospect was so favorable for an advance that 
many parties bought Calls, whilo others, in order 
to secure a profit, should the stock fall, bought 
Spreads. The result proved that those who bought 
Spreads were the wisest, as the stock, instead of 
advancing, sold at 18f before the expiration of the 
month, and the holders of Spreads made a net pro- 
fit of $1,075 on 100 shares, the cost of the Spread, 
including commission, being_ $212.50. 

A very good method of operating is to purchaBe 
Spreads on one or more of the stocks which have 
fluctuated the most rapidly during the past two 
years, and leave the contracts with the broker 
through whom they were purchased, with instruc- 
tions to settle them whenever it should be neces- 
sary to do so in order to realize a net profit of 100 
cent on the money invested, which would be 
$200 on 100 shares. By doing this the speculator 
t prevented from making a much larger profit 
should the price of the stock move steadily in his 
favor as was the case with Union Pacific during 
March, 1875, when holders of Spreads on 100 
shares, costing, including broker's commission, 
6212.50, realized from $2,000 to $2,400 net profit. 

It will be noticed that the fluctuations during 

[tain months were very small, while for the 

months of the more busy season they were very 

large, and that the average rise and fall in prices 

sufficient to afford handsome profits to holders 

of stock Privileges. 

It is this constant change in prices, and the 
knowledge that large profits are made by those 
who are on the right side of the market, that 



\ 



old at the New York Stock Exchange, 



OF* JS3E3r»T., 187S. 



»t. 7. 

Low- 
eat. 


Sept. 8. 

High- Low- 
est, est. 


Sept. 9. 

High- Low- 
est, est. 


Sept 

High- 
est. 


10. 

Low 
est. 


Sept 

High- 
est. 


11. 

Low- 
est. 


Sept 

High- 
est. 


.13. 

Low- 
est. 


Sept 

High- 
est. 


14. 

Low- 
est. 


Sept. 

High- 
est. 


15. 

Low- 


Sept. 16. 

High- Low- 
est, est. 


394 


40i 39| 


401 404 


394 


394 


39| 


384 


394 


28| 


391 


384 


38| 


371 


38f 374 


16| 


184 17 


194 184 


19| 


184 


18f 


174 


18 


36| 


174 


16f 


19 


174 


19 181 


56f 


57# 56| 


57f 57 


574 


56| 


564 


55| 


561 


544 


554 


534 


53| 


514 


43| 514 


36 


364 36i 


374 36| 


36| 


36 


36 


35| 


36 


354 


354 


34| 


344 


34 


354 334 


19 


19| 194 


194 19i 


194 


194 


19* 


19 


19 


17 


17f 


174 


174 


164 


17 164 


22| 


234 23 






224 


221 


22 


22 


22 


21| 


214 


20 


21 204 


37i 


374 37| 


38f 37f 


384 


37f 


374 


371 


381 


374 


374 


364 


364 


33| 


36 33| 






64 64 








6 


54 


54 


5f 


6 6 


73 


73f 734 


734 73f 


734 


72| 


73| 


734 


744 


74 


74 


734 


734 


724 


71 x 71 


78f; 804 794 


814 804 


81 


79f 


804 


794 


804 


78f 


79| 


79 


794 


781 


79f 784 



| 
;. 23. J 


Sept. 24. 


Sept. 25. 

High- Low- 
est, est. 


Sept. 27. 

High- Low- 
est, est. 


Sept. 28. 

High- Low- 
est, est. 


Sept. 29. 

High- Low- 
est, est. 


Sept. 30. 

Hiigh- Low- 
est, est. 


Fluctuations lor the Montu 

ending Sept. 30, 1875. 


est. | est. est. 


Highest. 


Lowest. 


Dlff'ence 


39 


39| 38| 


394 384 


391 384 


391 394 


40 391 


394 391 


404 


371 


34 


164 


174 16f 


171 174 


17 161 


174 164 


174 164 


17 16| 


204 


154 


5 


524 


534 534 


534 534 


534 524 


534 524 


541 531 


544 534 


594 


514 


84 


34f 


344 34 


341 34 


344 334 


344 33| 


344 344 


344 344 


374 


33| 


31 


154 


154 15 


154 154 


154 154 


164 151 


17 164 


174 164 


194 


15 


44 


19 


184 174 


184 184 


184 184 


184 184 


194 19 


194 194 


234 


17f 


54 


34| 


354 34 


351 34 


354 341 


364 344 


38 361 


37f 374 


384 


33f 


5 


54 


5| 54 


64 54 


64 64 


64 61 


74 64 


74 64 


74 


54 


If 


70 


704 70 




704 694 


704 694 


704 694 


70 694 


744 


694 


n 


754 


764 754 


764 75| 


761 75 


761 754 


764 754 


76f 754 


814 


75 


64 



d LOWEST Prices of the Speculative Stocks for the year 1875. 



June. 


July. 


August. 


September. 


Fluctuations for the nine months, 
enuing September 30, 1875. 


i Low 


Dir. 


High Low 


Dlf. 


High Low 


Dlf. 


High Low 


Dif. 


Highest.^ 


Lowest. 


Difference. 


k 35| 


6 


424 364 


6 


43J 381 


H 


401 37£ 


31 


48| 


35! 


12| 


\ m 


6f 


i5i m 


*4 


161 14£ 


24 


204 154 


5 


354 


12J 


23£ 


57 


8 


62g 57& 


M 


62 59 
39 35J 


3 


594 51£ 


8£ 


801 


51i 


28£ 


^28§ 


65 


37J 33§ 


4i 


3£ 

11 


374 33| 


3§ 


39g 


28f 


102 


b21| 


8} 


24& 182 


H 


20 181 


19J 15 


41 


32! 


15 


171 


80| 


31 


26 23 


3 


25J21J 


3f 


234 17| 


5! 


29 


17! 


111 


31g 


10§ 


41* 34 


n 


40i 36| 


3& 


38| 33g 


5 


455 


30J 


15 


4| 


«i 


71 4J 


*ft 


6} 5J 


n 


71 5| 


It 


21| 4£ 


164 


' 6ft 


10* 


764 68 


84 


754 71* 


3? 


744- 69* 


4* 


Tfti 1 36 





Highest and Lowest Prices of Stocks, sold at the New York Stock Exchange, 





FOR 


DVEOIWrH O^ 1 Si E3.tr* M.-., 


1875. 












The Price) her. g|»,„ , re ft, 
100-share lot, 


Sept. 1. 
~40 W 


Sept. 2. 

4fi|"":«ii 


Sept. 3. : Sept. 4. 


Sept, 6. Sept, 7. 


Sept. 8. Sept. 9. 


Sept. 10. 


Sept. 11. 


Sept. 13. Sept. 14. 


Sept. 15. 


Sept. 16. 


NORTHWEST 


40* 39* 39* 39J 


391 31} 39} 39i 


40+ 39* 40$ 40* 


39* 39* 


39$ 38+ 


39* 284| 39$ 38* 


38| 374 


38} 37* 


ERIE, ~ 






17* 1B|| 174 16} 


17 16} 16} 16! 


18* 17 19* 18j 


19* 18* 184 1 


18 16* 


17_$_ 16} 

55* 53* 




V* 

1} 
1 


19 18$ 


LAKE XIIOJIK 








MS 57 J 
37 36J 


5-j :,i ;+ 


57 S6*j67|__56j 

36 35+ 36| 36 


57* 56} 57$ 57 


57* 56) 


56* 55$ 


56$ 54$ 


53} 


■135 51} 


ST. PAUL,.. 






3(H 


36} 36* 37+ 36} 


36$ 36 


36 35$ 


36 351 


35* 34f 


31} 


35* 33} 












18} 18} 


19 18$ 19} W 


19$ 19* 19* 19J 


19* 19} 


19} 19 


19 17 


17$ 17* 


17$ 16} 








•»} 


23+ 


■_>:« -j:i 


23* Bill 
37* Mil 


22+ 23 28$ 22$ 
37* 36} 37$ 37+ 


23* 23 




23+ 22} 


22 22 


22 21} 


21* 20 


21 20+ 


PACIFIC MAIL 




37* 37$ 38$ 37$ 38* 37$ 


37* 37$ 


38$ 37* 


37* 36* 36* 33$ 


36 33} 


WABASH, 






«t 


5} 5} 


6 5* 


6* 5*1 1 6* 6+ 








6 5} 5} 5} 


6 6 


UNION PACIFIC 


73j ri{ 

78+ 77* 


73J 

79+ 


7-'| 
784 


74 73$ 


7:;» 73 

79+ 7.1$ 


73} 72} 73* 73 j 73$ 73* 73+ 73$ 73* 72* 


73$ 73j 


74* 74 


74 73*1 73* 72} 


71 x 71 


WESTERN UNION 


79* 78J 


79* 78$ 79* 78} 80* 79*j 81* 80* 


81 79} 


80} 79} 


80+ 78} 79$ 79 | 79+ 78$ 


79} 78$ 


Highest and Lowest Prices for put 


Sept. 17. 


Sept 


18. 


Sept. 20. 


Sept. 21. 


Sept. 22. Sept. 23. | Sept. 24. Sept. 25. 


Sept. 27. 


Sept. 28. 


Sept. 29. 


Sept. 30. 


i nir the Montn 

ending sept. 30, 1875. 


Thirty Days. 


BUI,..t. 


Low.... 


Diir-u™ 


NORTHWEST, 


3*j li-'S 


38i 38 


39s m 


39J 39} 


39* 39 39* 39 

17$ 16* IT* 16* 


39| 38} 39+ 38$ 
17* 16} 17$ 17+ 


39$ 38* 


39$ 39* 


40 39$ 


39} 30$ 


40+ 


3 


7$ 

5* 


3} 




l'.IJ 1HJ 


201 


19* 


20 18$ 


17} 16} 


17 16$ 


17* 16$ 


17* 16$ 


17 16} 


20* 


1 


5 


LAKE SHORE 


r,:i} 53 


53* 


52+ 


54i 52$ 


55* r,:ii 


64+ 53*54 52* 


53} 53+ 53* 53* 


53} 52$ 


53$ 52} 


54$ 53$ 


54$ 53$ 


39* 


51* 


8* 


ST. PAUL, 


:tr,+ :ii+ 


35 


:m# 


35} 35 


35} 35$ 


35} 34* 35 34$ 


34J 34 34$ 34 


3.1+ 33} 


34* 33} 


34} 34* 


34+ 31} 


37+ 


331 


34 


OHIO ,(• MISSISSIPPI, 


17* l(i» 


m 


18} 


17| 17 


17 10} 
21+ 21+ 
36} 35} 


16+ 15$ 10} 15} 


15} 15 15$ 15± 


15* 15} 


16* 15} 


17 16* 


17* 16* 


19* 


IS 


4* 


BANNIBAL 4- ST. JO 


•Hi 21i 




31} 20* 


21 aqdjso 19_ 

36$ 35+ 35$ 34* 


18* 17} 18* 18* 


18} 18} 


18} 18* 


19} 19 


19). 19} 


23* 


17} 


54 


PACIFIC MAIL, 


36] 35j 


36J 


35i 


:«H 35S 


35} 34 354 34 


35* 34} 


36} 34$ 


38 36) 


375 37} 


3SS 


33$ 


5 


WABASH, 


6 6 


6 


6 


6 6 




5} 5} 


5{ 5} 6* 5* 


6$ 6* 


6* 6} 


7* 6) 


7* 6| 


?i 


5} 


1* 


UNION PACIFIC, 


70} 011+ 


70+ 


69f| 70i 70 


71} 70+ 


71+ 70* 70} 70 


70* 70 


70* 69+ 


70* 69* 


70* 69} 


70 69} 


74* 


69+ 


4f 


WESTERN UNION, 


79+ 7.is 


7'J 


77ij 78* 76| 


77 x 76 


76* 75*1 76* 75* 


76* 75}l 76* 75} 


76$ 75 


76$ 75} 


76$ 75}| 76$ 75} 


81* 75 6+ 



A Table showing the DIFFERENCE between the HIGHEST and LOWEST Prices of the Speculative Stocks for the 


year 1875. 


1875. 


.Tau.ary. 


February. 


march. 


April. 


May. 


aune. 


July. 


A» e u 9t . 


September. 


Fluctuations for the nlue months, 
enuliur September 30, 187G. 


.to™. 


■*- 


n 


"*- 


0, 


"»- 


00. 


■ »!_ 


0,1. 


„„„u.. 


Oil. 


„| 8 I„,.„ 


o,r. 


„, e ^„ 


o,r. 


■WU. 


0, 


mm l/,» 


■>"■ 


n,me„ 


— * 


-~ 


North woet, 


4"( Mi 


2+ 

'1 


•171 391 


n 


46+ 38| 


n 


45+ 41$ 


4+ 


42+ 37} 


48 


41| 35J 


6 


■12J 301 


6 


43* 38+ 


4} 


40+ 37} 


3* 


48} 


35} 


12} 


Erie, 


301 S8 


•_»ll 2,1' 


3 


35+ 26+ 


9 


32+28J 


3} 


.iiij nil 


■ U 


18,1 12.1 


(1 = 


151 13,1 


28 


16+ 14* 


21 


20* 15+ 


S 


35+ 


12+ 


23+ 


Lake Shore. 


80J1SJ 


13, 72 


n 


75} 12$ 


2} 


15+ 10} 


«i 


72} 37, 


IS 


iii .77 


8 


62} 51} 


4* 


62 59 
39 35} 


3* 

1+ 


59+ 511 
31+ 33} 


8* 


80} 


51+ 


288 


St. Paul, 


39} 36 


SI 


38$ 32+ 




38} 32+ 


6* 


40-30} 


n 


38 32 


6 


3.7, 28; 


«i 


37; 3 1, 


4* 


3} 


39} ] 28} 


19} 


Ohio 4 Minn. 


3*| SOJ 


0} 


29J24 


29} 24! 


4+ 


29* 26+ 


3 


27.1 21 


6* 


21! 21; 


»| 


24} 18J 


58 


20 18+ 


19J 15 


4* 


32} | 15 


17} 


Han. & Hfc Jo., 


26 IS) 


n 


22* 19} 


2f 


5SJ 20} 


t-.i Hi 


4, 


25J 20} 


*» 


21 2u; 


3! 


26 23 


3 


25J21J 


3* 


23+17} 


»f 


29 


17} 


"1 


Paolflo Mail, 


3llf 33, 


3 


37*308 


7 


15J 34j 


10+ 


*t 


4.7, 32/ 


1** 


« .11, 


10,1 


41*34 


7 8 


40*36} 


3} 


;is, :u; 


5 


45} 


308 


15 


Wabash, 


211 Hi 


n 


17] IU 


»} 


18 11 + 


«). 


1... Il< 


2» 


111 8? 


«» 


10 4j 


5J 


71 48 


s+ 


65 51 


»i 


78 .7' 


1» 


21} 


4J 


16} 


Union Paoino, 


38)36 


2s 


"J 38,1 


31 


68} 40} 


27s 


78* 63} 




7S1 711 


6} 


,1+60 


loi 


76j 68 


7.71 71 


3} 


711 no 


41 


79+ 


36 


43+ 


"Western Union, 


19} 10| 


8* 


151 ™» 


5 


788 13+j 5* 


80* 76} 


38 


80(718 


8} 


19| 71* 


8} 


641 73 


Hi 


84J78J 


<H 


81J75 


6+ 


84} 


TO} 


14J 


THI 

The history 
change has shov 
the side of thoB 
of higher prices 
policy has been 
expeoting to bu 
so fulfil their co 
the "balls" wh 
bought Call cot 
better than the 
who bought Pu 
As Commodi 
friends: "You 
Ho himself has 
has ample roast 
fidenoe iu it. 
pie of action u 
ally believed, t 
the early age a 
life as a maua 
till now, his pre 
Whenever he i 
everybody laki 
and if they wi 
the stork or se 
Those who 
decline in the 
low figures, ot 
morally cerlaii 
hold firmly for 
For the pas 
downwards, ui 


! ST0 

over 

! then 
itrnet 

tracts 
'bear 
conti 
re Va 
see b 
teste* 
n in h 
So wel 

iloisb 

uit he 
wliio 

it to 
a kuov 

take 

prices 

il raw 
three 

jtil f 


CK 

cula 
the \ 
have 
.ho. 

on a 

lit s 
hav 
"wh 

lets 

vs t 
this 

'ist 

od, t 

d on 
n to 

t'al 

ike 

tion. 
man 
ion 


MARI 

on at 

llllllgl 
H'ratoi 
is for 

profit. 
ocks f 
in th 
sold 

iii is ; 

lis is 
opinio 
i expo 
je Coi 
lat it i 

Bold s 
aomme 
ner of 
enmai 

contr 
lthat 

lltagC 

icks. 

andso 

lis the 
if all 


:et. 

the 

n ad 
tin 

fnt u 

lie 

In 

or a 

Ion 

11. 

i bu 
iene 

need 

steii 
eon 
1 « 
I tin 

of 
md 

CIS 

ue ] 

nark 
lie 


Stock 
van tag 

inticip 

tarket 

ther v, 

ks dw 

say 

1 con 
v fully 

ilmrt. ' 
his bu 
ill, oat 

oilig t 
v eillu 

nv n 
uy th 
n'thei 

•t has 


Ex- 

e on 
ition 
ernl 
-ery, 

ords, 

V, or 

rinei- 
ener- 

Fron, 

'in a 
1. an 
they 

endi-i 

slock 


large 
that 

activ 

,0 li 
most 

price 
beliu 

30 ,1 

the ] 

low- 
tl,o. 

No. 

20 ] 
the 

this 

prot 

the 

V 


reach 

■o ill 

ent 

ty an 

ve & 

at w 
i tha 

he p 
ysis 
ndu 
l pa 
v sel' 

jricei 

1, «, 
h-we 

id ut 
tet. 

,ast 
stocl 
Ire.l 

th. a 

ulva 
acitii 


edalc 

it v nl 

vi' at 
hut Ih 
,1 liigl 

hore i 

e stool 
deb it 
atwh 

ispect 

so goc 
2ipe 

iug in 
ksago 

1 moll 
H-oliill 

stook 

likel 

would 

ctly 88 

\'i'i'L 

for a 
it. be) 

uoulh 

1 be ', 

ioe wi 
Uail 


the 1 
ast r 

erpr 

s de 
is no 
ichi 

for 

d th 

irtci 
arly 

1,.'" 

men 
St. P 
fe tc 

riP 

-ise. 
w t) 

id a 

be 
„.1L 


point 
ankei 
saohed 

ent m 
ces th 

the pr 
Il in : 

w sole 
wasq 

n ad\ 
1 (Jul 
t. ilista 

ill pei- 
lut th 
nl' gi 
i on ei 

ion E 
Hill. 

• boy. 
2iper 

cilic 1 

is it is 

c prii-e 
s hold 
.relit , 

ve am 

on Oi 

alum 
is iapi 


han 
of A 

bottc 

isen 

t the 
is ft 

s on 

'end 
cent 
ay 1 

her c 
.e d 
ie,0 
Dna 

Jails 
alio 

ug 1 
f ne 
-i|,.-i 
Is ,', 
t eel 

las 

acifi, 


ever 1 
Vail S 
m pric 
i-ill br 
s been 

Exch. 
llv 2, 
in Ja 

West 
of tw< 
lower 
■ expe 

on sev 

I' thest 

lil, & 

lyof t 
listai 

selling 

nth al 
its nr" 
rly *2 
e equa 

aiii to 
as the 


efort 
reet 
es, ai 
ngg 

nge. 
per 

the 

,,er 

ted i 

■i nl , 
. A 
le c< 

iese 
h are 

■e fr, 
ui St 

,. 1 

Spre. 
mil , 
ly as 
he [i 

y nnc 


. A 

think 
dare 

cater 
for a 

f the 
The 
cent, 
last, 
nest 

iiiun, 

t was 

large 
f the 

nong 
iiiing 

tocks 

ck to 

u ring 
ids on 

large 


stocks, and are as likely to fall 1 per cent as to 
rise They are usually very active stocks and we 
would advise our Customers that Spreads will be 
a good investment for the present month. iVXany 
of our customers invariably buy Spreads on all 
stooks in which they operate, even on those they con- 
sider most likely to advance ; they do this in order 
to make sure of a profit in case of a panic and 
sudden decline. As we predicted last week the 
market has been very favorable for the purchasers 
of Privileges, and Calls or Spreads bought during 
the past week will undoubtedly pay largo profits 
before the end of the present month. In years past 
October has always been an active month at the 
Stock Exchange, and we know of no reason why 
October 1875 should be an exception to the general 
rule. 

- Persons residing at a distance from New York, 
who are not familiar with Wall Street, can forward 
to us the amount they wish to invest, on receipt of 
whioh we will purchase for them a Privilege on 
such stock as will be most likely to pay a profit. 
A certificate of purchase, giving name of the stock, 
market price, distance from market, date of issue, 
and date on which it expires, will be forwarded 
immediately after the contract is purchased. Un- 
less otherwise ordered, all Priviliges purchased by 
us will be held subject to the order of the purchaser 
for settlement. This is necessary in order that we 
may be able to take advantage of a sudden rise or 
fall, and settle the contract at the most favorable 
time. Parties desirous of participating in the pro- 
fits of the October rise should send in the 
immediately before prices begin to advance. 





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